economic rent


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economic rent

  1. payments (in money or in kind) made to the owner or controller of property for its use. Historically, in preindustrial societies, rent paid and received for LAND has been of major importance, e.g. under the FEUDAL MODE OF PRODUCTION. In MARXIAN ECONOMICS, with reference to situations where rent for land is levied in a context in which market relations exist, two main forms of rent are recognized:
    1. absolute rent, the basic level of rent; and
    2. differential rent, the extra rent obtained from land of higher than average productivity (not including any return on additional CAPITAL invested in improving the land).

    Debate has existed (e.g. Hindess and Hirst, 1975) as to whether taxes on peasant production levied by the state constitute a fundamentally different MODE OF PRODUCTION (see also ASIATIC MODE OF PRODUCTION) from the forms of rent' that emerged in Western Europe, or whether the ‘tax-rent’ couple constitute a single mode of production. For some Marxists, the attraction of the latter view is that the idea of a single developmental sequence of modes of production can be preserved.

  2. (ECONOMICS) rent or quasi-rent, any payment, or part payment, made for a FACTOR OF PRODUCTION, including human labour, which derives from an absolute shortage of supply (e.g. the fixed supply of land, inherent limitations in the supply of ‘talent’, outstanding musical or sporting abilities). Compare FUNCTIONALIST THEORY OF SOCIAL STRATIFICATION.
Collins Dictionary of Sociology, 3rd ed. © HarperCollins Publishers 2000

economic rent

That rent on a property which is sufficient to pay all costs of operation, maintenance, and payment of mortgages (but not utilities and services).
McGraw-Hill Dictionary of Architecture and Construction. Copyright © 2003 by McGraw-Hill Companies, Inc.
References in periodicals archive ?
Such a theory of economic rent may be appropriate when attempting to explain rentier positions in relation to labour and capital but not when it comes to land.
The concept of economic rent has been used as a justification for royalty payments.
Or, searching for jobs or employment of capital with large economic rent? If this was all there were to the concept, the present essay would not have been written.
The yield is worth more than the investment rate, so the production and economic rent of growers in the Tamrong is appropriate investment.
Utility adjustment for economic rents. If the landlord changes the provision of utilities from the previous period to the current period, the economic rent is affected.
ten percent) as the three payments of economic rent. The total stated
(Oh, all right, you can dump landfill in the bay and create a bit more acreage, but let's not be picky.) Pure economic rent is earned when quantity is fixed and the factor has no other uses.
For example, the six-month change in rent for all renter-occupied units in a segment is the ratio of (1) the sum of the current economic rents for each sampled unit within the segment, weighted by the total renter weight for that segment, and (2) the sum of the economic rents charged six months ago for each sampled unit within the segment, weighted by the total renter weight for that segment.
On the other hand, Ben Amour noted that the Competition Council will address the issue of economic rent in a workshop, expected to take place on the 21th of April in Rabat preparing for the international debate about competition that will take place from the 14th to 17th of December in Tangier.
The economic rent and other income that derives from them is largely used for public purposes.
Its main features affecting economic rent are new technologies in methods and equipment, changes in the size and scope of operational units and insecurity of the market environment.

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